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By Suzanne Blake
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President Donald Trump spoke about his administration’s plans for Social Security during his State of the Union address on Tuesday night at the U.S. Capitol.
The Social Security Administration (SSA) has long been facing a funding shortfall that could hit as early as 2033, according to most recent estimates. At that point, beneficiaries would likely be able to receive roughly 80 percent of the payments they are owed.
Why It Matters
Social Security serves more than 70 million Americans, but the SSA is currently facing a funding shortfall that will see benefits slashed as early as 2033 if nothing changes, according to recent estimates.
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More seniors could be filing early, despite the fact that it gives them a lower payment amount, because of concerns that the SSA will run out of money for full payments. And while several lawmakers and financial experts have proposed ways to address the future funding shortfall, so far none have gained any real traction in Congress.
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What Trump Said About Social Security At The SOTU
During his State of the Union address, Trump said that he'll always protect Social Security. He said his administration is making it easier for Americans to save for retirement and said under his administration he'll protect the long-standing program.
When Will Social Security Run Out?
While Social Security is not expected to actually “run out” of money, its main retirement trust fund is projected to be depleted in the early 2030s, after which benefits would be reduced unless Congress acts.
According to the 2025 Social Security Trustees Report, the retirement trust fund (Old‑Age and Survivors Insurance, or OASI) is projected to be depleted in 2033. At that point, Social Security would still collect payroll taxes and could pay about 77 percent of scheduled benefits, even if Congress does nothing.
The combined Social Security trust funds (for retirement and disability) are projected to be depleted in 2034, at which point about 81 percent of benefits could be paid. The disability trust fund alone is projected to be fully funded through at least 2099.
Are Social Security Benefits Taxable?
Social Security benefits can be taxable, but only for some people, depending on income.
The IRS taxes Social Security benefits only if your total income is above certain thresholds. Many retirees pay no federal tax at all on their benefits.
Social Security benefits include retirement benefits, survivor benefits and disability benefits. Supplemental Security Income (SSI) is not taxable.
Average Social Security Check
For retired workers, the average Social Security check in January of this year was $2,071 per month. That equates to about $24,850 per year and reflects the 2.8 percent cost‑of‑living adjustment (COLA) that took effect in January.
However, average monthly retirement benefits rise the longer someone waits to claim. For age 62, the average is $1,415, while those who wait until age 70 bring in an average of $2,248, according to the Motley Fool.
Specifically for disabled workers, the average comes in at $1,630 per month, and married retired couples bring in about $3,200 per month combined.
Past Social Security Strife
The SSA has faced earlier funding crises and successfully moved past them. The program went through major reform in the early 1980s.
In 1983, President Ronald Reagan signed into law several changes in hopes of keeping Social Security secure and stable for decades to come.
The Greenspan Commission on Social Security Reform was also created to study Social Security’s solvency.
Other reforms included a bump in payroll taxes, requiring federal employees to begin paying into Social Security and gradually raising the full retirement age to 67.
Earlier this year, Republican Senator Bill Cassidy of Louisiana and Democratic Senator Tim Kaine of Virginia proposed a theoretical bipartisan solution to the funding issues. The proposal advocated for an investment fund, allowing Social Security to invest in stocks and other assets, starting with a $1.5 trillion Treasury boost.
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, previously told Newsweek: "If you're concerned about both your financial future and the future of this major government program, you may opt to say, 'I'm going to get what benefits I paid into while I'm sure I still can.' Because at the moment, there's no sign of the economic turmoil and legislative unrest that has plagued Americans over the last few months coming to an end."
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, previously told Newsweek: "The bigger concern is the trust fund depletion projected for 2033–2034, depending on which estimate you look at. After that point, if nothing changes, benefits could be reduced across the board."
What Happens Next
While Congress will need to take legislative action to prevent the impending trust fund shortfall, Thompson has said it will take a few more presidential administrations to fully address.
"This issue has been kicked down the road for years because Social Security isn't a revenue-generating program. It's a cost line item," he said. "Legislators will eventually have to deal with it, but chances are it will be left for the next few administrations to solve."
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